Think back to the first time you decided to try a product from a company that became one of your new favorite brands. Chances are good that the packaging had a major influence on that decision. Yet product packaging is an afterthought for some brands. The product is designed first, often by a different team that doesn’t think about packaging. This disconnect causes some brands to miss the opportunity to integrate the two strategies and elevate the overall product/brand value proposition.
Packaging strategy can significantly impact consumer purchasing decisions. Here are six packaging statistics to highlight the importance of packaging strategy.
1. 72% of American consumers say that product packaging design influences their purchase decisions (Ipsos)
Brands should know the factors that affect consumer buying behavior. In one survey, 72% of American consumers state that a product’s packaging design has an impact on their decision to buy. That’s a sizable majority.
A product’s packaging design plays a vital role in attracting consumers because it is the first thing buyers see while shopping or browsing, either online or in-store. If the product’s retail packaging looks attractive and compelling, buyers will likely form a positive perception of the brand. Studies have also demonstrated that colors affect a consumer’s feelings. such as the way that red can be hunger-inducing, white represents purity, and black signifies elegance. Product information printed on packaging also influences purchasing decisions as it combines both descriptive and marketing content to inform, entertain, and persuade the buyer.
2. 30% of businesses report an increase in revenue after improving product packaging (Packaging of the World)
Investing in a packaging design refresh may not be included in your marketing budget, but a new customized packaging refresh may potentially drive more than enough incremental profit to cover the cost. Three out of ten businesses claim that they observed a significant revenue increase following packaging improvement.
An enticing product packaging design will make your product stand out among competitors and strengthen your buyers’ trust. Consumers will associate this trust with your brand’s other products as well. It reinforces your brand identity, which may correlate to a revenue increase.
3. 67% of American consumers report that they prefer paper and cardboard packaging (Ipsos)
The goal of packaging is meant not only to appeal to the consumer, but also to protect the product from external circumstances. When your brand has to choose between different types of packaging materials, it is important to note that 67% of American consumers prefer paperboard packaging.
Consumers increasingly favor sustainable alternative materials over plastics in packaging. Paper and carton-based packaging are generally perceived to be more environmentally responsible while serving the purpose of product protection.
4. 40% of consumers will post photos on their social media accounts of products with unique and branded packaging (Dotcom Distribution)
The growing mainstream social adoption of social media has created a platform to share and communicate new ideas. One study shows that about 40% of consumers share photos of products they perceive to have unique and appealing packaging. It’s easy for these posts to circulate if there are enough interactions and similar sentiments from other people. A positive engagement with the product post will attract more buyers who may patronize your business.
5. 74% of consumers report that honesty and transparency in product labeling builds consumer trust (Catalpa)
With busy consumer lifestyles and the massive number of products offered in the market today, there is no assurance that consumers will read all the labels on their purchased products. Consumers have varying preferences in product ingredients to accommodate different personal needs and tastes; 74% report that they prefer to buy products from transparent and honest brands.
Product label honesty and transparency build consumer trust, which positively affects purchasing decisions and loyalty. Transparency strengthens the brand image and helps buyers give real feedback. Further, an honestly and clearly messaged product label also helps consumers determine which products to purchase based on their personal needs and desires.
6. 52% of consumers have changed product brands due to new packaging design (WestRock)
Research shows that 50% of consumers may switch to a new brand after their trusted brand changes its iconic packaging design. A drastic change may diminish consumer trust. Product packaging does not just convey valuable information to consumers. Visuals, like graphics, images, and logos, represent the brand and instill trust and credibility. It’s important to understand how your consumers feel about your current packaging before switching to a new design. The benefits of market research and A/B consumer testing cannot be overestimated.
Custom packaging is just one of the initial steps to improve your business performance. Do you want to know more about the needs of your business? Talk to the experts at Meyers to learn about their professional printing solutions. Contact us today.